MUREX MANAGEMENT, INC. (MMI), a company based in Plano, Texas, has been charged in connection with a scheme involving fraudulent ethanol transactions that led to significant financial losses for several institutions, including the now-closed First NBC Bank in New Orleans.
According to the U.S. Department of Justice, the case involves falsified "buy/sell" transactions between MMI and another company, referred to as Company A, beginning in 2013. These transactions were supported by fake invoices and falsely presented as legitimate sales of ethanol. MMI and Company A allegedly used these invoices to create the appearance of financial stability.
Between October 28, 2013, and September 18, 2015, approximately $1.2 billion in fraudulent transactions took place. MMI reportedly earned around $6.1 million in profits. These fake invoices were sold as accounts receivable to buyers, including financial institutions, through an online marketplace. When Company A failed to pay, banks including First NBC Bank and another in North Carolina suffered combined losses of more than $81 million.
MMI has been charged with aiding and abetting financial fraud. If convicted, the company could face a fine of up to $1 million or twice the amount of gain or loss resulting from the fraud.
Acting U.S. Attorney Michael M. Simpson emphasized that the charge is an allegation and that guilt must be proven beyond a reasonable doubt. The investigation was conducted by the FDIC Office of Inspector General and the Environmental Protection Agency’s Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Matthew R. Payne and Nicholas D. Moses.
The Justice Department also noted that restitution and special assessment fees may be imposed if MMI is convicted.
